The amount of attention each little move, fluctuation and uncertainty receives has never happen before in the history of the human race. This market moves in ways that are affected by is own movement or, rather, the attention each move in the market affects how the market moves. Which all means don't mistake the trees for the forest.
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Here's the article—PS: don't forget to down load the report: ‘In Gold We Trust’
Trusting in Gold - $1,480 in 12 Months, $2,230 Longer Term by Ronni Stoeferle
Ronni Stoeferle, with specialist advisors, Incrementum AG, produces one of the most comprehensive analyses of the global gold market available under the on going title–‘In Gold We Trust’(54pages) (download here).
Stoeferle a believer in gold as a monetary metal rather than as a commodity and notes that gold analysis should be the preserve of those who study monetary matters rather than those who specialize in commodities which is the normal pattern amongst the major financial institutions.
Ronni, is positive on the role of gold and produces some extremely comprehensive analyses of various aspects of the gold market with regard to global economics. Stoeferle notes as follows: o “Even though the consensus is convinced that the gold bull market has ended, we remain firmly of the opinion that the fundamental argument in favor of gold remains intact.
There exists no back-test for the current financial era.
Never before have such enormous monetary policy experiments taken place on a global basis. If there ever was a need for monetary insurance, it is today.’
- “In the course of the recent gold crash, the market has once again demonstrated its tendency to maximize pain. Massive technical damage has been inflicted. We are convinced that repairing the technical picture will take some time. Accordingly $1,480 is our 12- month target.”
- Incrementum warns: “As central banks are engaged in the
greatest monetary experiment in the history of finance, the
current bubble dwarfs all previous financial bubbles by a large amount.
- We believe that there are unmistakable signs of an enormous debt bubble – respectively bond bubble. However, government bonds are still considered to be ‘risk-free’ assets in private and institutional portfolios as well as foreign reserves. This dominant paradigm is absurd, especially in times of structural over indebtedness and negative real interest rates.” This too suggests that some form of insurance against stock and bond market collapse is perhaps essential and gold would very much seem to have the potential to fill this role despite its recent
weakness.
- Indeed,the fall in the price will, to many believers in gold, make it a better investment than ever for those who may have missed out on the bulk of its 12 year bull run.
Stoeferle’s 12-month price target... (Read full article here)
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